Arab leaders unfazed about investing in troubled times

LONDON, England (CNN) -- Storm clouds may be gathering over the global economy as the credit crunch bites harder, but a group of young Arab business leaders are remaining positive.

"I think with every downturn, there is a potential window of hope," Rami F. Makhzoumi, president and CEO of Future Pipe Industries, told CNN this week.

"Opportunity exists with any crisis. So, by no means is it a matter of exploiting or taking advantage of the situation, but actually helping to rebuild the economy, the U.S., and this potential recession."

Omar Bin Sulaiman, Governor of the Dubai International Financial Center, takes a long-term view: "The U.S. environment is always an interesting environment for any investor or corporation," he said, "When the economy is doing well and when the economy is slowing down. There are always opportunities."

These canny operators say there is plenty of potential in the U.S. market -- but their advice is to proceed with caution.

"I think it is a buyers market, quite frankly, but buyers have to be careful, Sulaiman said.

Zayed R. Al Zayani, managing director of Bahrain-based EuroMotors, believes the market is still volatile.

"What we keep seeing is that things are not bottomed out yet. There seems to be more room for correction," he said.

Middle Eastern investors have already gobbled up some Stateside opportunities -- buying stakes in brands like Barneys, MGM Mirage and U.S. home builders, Toll Brothers.

But not everyone is happy about these moves and Arab investors are finding themselves and their business practices are being scrutinized like never before.

Earlier this year George W. Bush issued an executive order tightening controls on foreign direct investment. From the United States to the European Union to Australia, Western governments have called for increased scrutiny of sovereign wealth funds -- wanting to know exactly where the money is coming from -- and whether there is a political agenda behind it.

"How welcome is the Arab money? There is still a question mark here now. Especially in the media and the public. That does not give comfort to the investors," Sulaiman admits.

Just this week the government of Abu Dhabi issued a statement to U.S. Treasury Secretary Hank Paulson, promising not to use its wealth funds for political ends. However these Arab business leaders say the fuss is much ado about nothing.

"Americans should not be concerned about the Arab money coming in. Instead, they should be encouraged by it. Arabs have been investing in the U.S. for 30 years with a very clean, clear, and transparent track record," Sulaiman told CNN.

"It's money hard earned, well spent, and you have all the measures in the world to scrutinize and see where the funds came from," Al Zayani agrees.

Instead of focusing on borders, these leaders say the West should concentrate on capitalism -- the very Western language that is now spoken around the world.

"It all starts with a handshake," Al Zayani says. "You know, if I shake your hand, I am not your enemy. I'm there to do business with you." E-mail to a friend